Micron's stock has risen nearly 220% in 2026, even after a recent pullback, on surging AI-driven memory demand and limited competition. The article says the main threat comes from two state-backed Chinese companies: Yangtze Memory Technologies, which aims to overtake rivals in NAND, and ChangXin Memory Technologies, which is about to launch a denser DRAM chip by the end of the year. DRAM accounted for 73% of Micron's revenue last quarter, so cheaper Chinese products could erode its market dominance and pricing power, while its high-bandwidth memory business is seen as relatively safe for now. The author expects demand to keep exceeding supply for the next few years and sees Micron's short-term competitive moat as strong, but expects growth to slow and still considers the stock a worthwhile long-term investment.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Micronsemiconductorsmemory chipsChina
Open a keyword to see other news on the same topic.
Related news
- Why Micron's Latest Long-Term Deals Are a Game-Changer for Investors
Memory chips have historically moved in boom-and-bust cycles, and Micron trades at a forward P/E of just over 5 times fiscal 2027 estimates as investors expect the current AI-driven supercycle to eventually end. Micron has signed 26 strategic customer agreements covering about 35% of its sales through 2030, while China's CXMT has lifted its DRAM share from 4% in Q2 2025 to 10% in Q2 2026 and could add new supply. KeyBanc analysts reportedly see HP and Dell extending their deals into 2031 and Alphabet talking about extensions to 2035. In the near term, KeyBanc projects DRAM prices rising 15% to 20% quarter over quarter, with NAND prices up more than 20%.
- Micron Technology ( NASDAQ : MU ) Shares Up 1 . 9 % – Still a Buy ?
Micron shares rose 1.9% on Thursday, trading as high as $931.65 and last at $931.24, on volume of 38,262,255 shares, below the average of 41,195,492. Supporters point to tight memory supply and strong AI demand, with management expecting supply constraints could persist through 2028, after fiscal fourth-quarter revenue of about $54.2 billion beat the top of its outlook. The company also has a $35 billion share repurchase authorization and pledged $50 million to U.S. memory research. Several analysts see the recent retreat as a buying opportunity, but the article flags risks from CXMT's progress in DDR5 and server memory, possible industry oversupply later this decade, and broader pressure on AI stocks from inflation and possible rate hikes. A senior executive sold 6,328 shares on October 14, and the consensus rating is 'Moderate Buy' with a target of $1,407.88.
- GMIF2026 : AI Inference Powers the Token Factory and Drives System - Level Rethinking of Memory & Storage
The 5th GMIF Innovation Summit (GMIF2026) was held in Shenzhen under the theme 'The Future Built on AI Memory and Storage', co-hosted by the Shenzhen Memory Industry Association and the School of Integrated Circuits at Peking University. Daniel Yen of Morgan Stanley projected that more than half of cloud data center capex will go to memory and storage (excluding HBM) by 2027, and outlined six innovation paths to overcome the 'memory wall'. Prof. Yimao Cai said HBM remains central to high-end AI compute but is limited by yield, cost and thermal constraints, pointing to NAND-based high-bandwidth technologies such as HBF as a major research focus. Samsung's Kevin Yoon said AI agents are generating massive KV cache demand, while Sandisk's Maya Zhang called this the first year of the 'inference boom', in which SSDs act as a 'token battery'.
- Micron, Intel lead chip recovery, adding nearly $250B as most of Wall Street falls: Chart of the Day
A basket of 60 chip-related stocks tracked by Yahoo Finance recovered nearly $250 billion in market value on Monday, with gains spread across memory makers, chip designers and equipment suppliers while most S&P 500 stocks fell. Micron (MU) and Intel (INTC) are each up over 2%, Sandisk (SNDK) is up nearly 5%, and about 70% of S&P 500 stocks are declining. The rebound follows a weak prior week, when Micron and Sandisk lost roughly 15% and 18% as memory stocks entered another bear market. JPMorgan upgraded Intel to Neutral from Underweight, citing AI demand and chip scarcity, while CoreWeave (CRWV) gave back most of its premarket gains despite a Goldman Sachs upgrade to Buy. The article also notes that 61 of the S&P 500's 100 strongest performers from March 30 through June 2 are rising Monday, and that the PHLX Semiconductor Index needs to hold the 11,000-11,100 area to avoid a larger washout.
- Micron and other chip stocks spring back to life after bruising selloff
- Prediction: This Will Be Micron's Stock Price By the End of 2027
Micron's shares have risen 333% over the past 12 months as AI data center clients buy its memory chips, with fourth-quarter revenue up 379% year over year to $54.23 billion and net income up more than 10-fold to $37.7 billion. The company has authorized $35.7 billion in share repurchases, and its forward P/E of 7 compares with an S&P 500 average of 19. The author links the low valuation to a sell-off in South Korea, where the KOSPI has fallen over 40% from its June peak, erasing more than $2 trillion, on fears of rising bond yields and growing competition from China's CXMT. Some South Korean experts forecast a memory chip supply glut by 2029, which the author says could bring years of stagnant performance similar to the period after the dot-com bubble. The author concludes investors shouldn't expect the stock to exceed its current price of $879 by the end of 2027.
Related markets
Latest news
- Why Meta's Q3 earnings could be a little hard to interpret
Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.
- Zerohash rolls out a new tool to move crypto without copying wallet addresses
Zerohash launched AUTH, a service that lets users move crypto, stablecoins and blockchain-based stock tokens between linked exchange accounts or self-custody wallets without copying wallet addresses or choosing a blockchain network. To transfer, users pick an account in an app that offers AUTH, sign in and approve the move, while the service handles routing and settlement and each app sets which assets and transfer types it allows. AUTH supports more than 600 connections, including Coinbase, Robinhood, Gemini, MetaMask and Phantom, with Coinbase, Robinhood and Gemini live and Kraken in beta. The launch comes as Zerohash's application for a national trust bank charter, returned by the Office of the Comptroller of the Currency in July, remains pending after a narrower refiling on Aug. 18.
- 2 charts show why Wall Street is right to worry about tech stocks
Rising cost of capital could affect the financial statements of hyperscalers such as Oracle (ORCL) and Google (GOOG, GOOGL) in 2027, as they need fresh debt to fund AI infrastructure and free cash flow may turn negative. JPMorgan strategist Mislav Matejka forecasts hyperscaler free cash flow will turn negative in 2027, implying credit markets will drive more of the AI build-out. Consensus estimates for 2027 capital expenditures are already rising from levels experts believe are too low. Morgan Stanley sees total 2027 capex among hyperscalers reaching $1.6 trillion, up from $978 billion estimated for this year. Dan Ives of Yorkville expects capex to reach the trillions and over 1,000 datacenters to be built in the next few years.
- Update on loan rate cuts as of the evening of Oct 19: MB, VietinBank, SHB, OCB join in
SHB, MB, VietinBank and OCB have announced loan rate cuts, following Agribank, Vietcombank, BIDV, ACB, LPBank and VietBank, with typical reductions of 1.5-2% per year. MB is cutting 1.5% per year for five priority sectors, to rates from 7.9% per year, and up to 2% in some cases; VietinBank is cutting up to 2% per year, while OCB offers up to 2.25% per year on some medium- and long-term loans for OCB Priority Banking members. SHB is cutting 1.5-2% per year for businesses and households and offers rates from 5.5% per year for lecturers and students at some universities. Vietcombank commits to cutting at least 2% through year-end, BIDV applies rates from 6% per year on short-term VND loans from 15/10/2026, and VietBank runs a VND 3,000 billion package. Specific benefits depend on borrower type, loan purpose, term and program conditions, following directives from the Government and the State Bank of Vietnam.
- Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel
Modal, a San Francisco-based AI cloud startup that previously ran its AI agent workloads only on Intel and AMD processors, will begin using Nvidia's new Vera CPU. Early tests showed the Nvidia chip doubled work capacity for AI agents, and Modal plans to run it alongside Intel and AMD chips, assigning each task to the most efficient hardware, though integration requires substantial software changes. Modal recently raised $750 million in a round led by Accel at a $15.75 billion valuation and expects $1 billion in sales over the next year, with usage tripled and revenue up more than 15 times year-over-year. Nvidia projects at least $20 billion in Vera chip revenue this fiscal year in a market it estimates at about $200 billion, and says OpenAI, Anthropic, Oracle and Perplexity also plan to use the chips.
- America's EV Plans Have Died
Billions of dollars went into EV factories, dealerships and marketing after President Biden set a goal for 50% of new US car sales to be zero-emission by 2030, but EV sales have since fallen sharply. US EV sales dropped 30.7% in the first nine months of 2026, after the $7,500 tax credit expired on September 30 last year, and gas prices near $4.50 per gallon have done little to lift them. According to Kelley Blue Book, the average transaction price of a new EV was $54,754 in August, above the $50,089 average for all new cars. Ford's EV sales fell 80.2% to 6,047 in the third quarter, and it has no new EV planned until its Fathom launches next year, while Tesla holds over 50% of the market and no other major automaker has even 10%. The article says EVs could recover if gas prices reach $5 and stay there for months, but that is uncertain.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.